UK Lawmakers Press Banks Over Restricted Services For Cryptocurrency Firms
A cross-party group of United Kingdom parliamentarians has formally challenged various banks over their reluctance to provide accounts and related services to companies focused on cryptocurrency and digital assets. The move highlights ongoing friction that industry participants say threatens the sector’s ability to expand within Britain.
On 11 August 2026, the co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group (APPG) — Labour MP Gurinder Singh Josan CBE and Lord Vaizey of Didcot, a Conservative peer and former digital economy minister — sent a “Dear CEO” letter to the heads of the country’s largest lenders.
The correspondence seeks detailed explanations of each institution’s policies toward crypto and digital asset businesses.
The lawmakers reported receiving consistent accounts of firms encountering repeated obstacles when attempting to open or retain bank accounts.
They also noted that several high-street and challenger banks have imposed limits or outright bans on payments and transfers linked to cryptocurrency platforms.
Institutions frequently mentioned in connection with such restrictions include HSBC, Nationwide, NatWest, Santander UK and Starling Bank.
In the letter, the co-chairs described access to basic banking facilities as potentially “one of the single biggest barriers to growth” for UK-based crypto enterprises.
They expressed concern that restricted services could hinder the development of licensed firms and deter international companies from locating or investing in Britain.
This issue is viewed as particularly significant ahead of the full implementation of the UK’s new crypto regulatory framework, expected to become mandatory in 2027 under the oversight of the Financial Conduct Authority (FCA).
The APPG acknowledged that banks carry important legal and regulatory duties to combat financial crime and safeguard customers.
However, the group stressed that many digital asset companies argue decisions should rest on an individual firm’s risk profile rather than a blanket approach based solely on the sector.
Economic Secretary to the Treasury Lucy Rigby had earlier indicated that, once firms are authorised under the forthcoming regime, they should not face banking restrictions merely because of their industry affiliation.
This letter forms part of a broader parliamentary inquiry launched by the APPG in July 2026.
The inquiry is examining the scale of banking access difficulties, their effects on businesses and consumers, the drivers behind the restrictions, and whether additional measures are required.
Written evidence from banks, payment providers, fintechs, crypto firms and other stakeholders is being accepted until 31 August 2026, after which the group intends to publish findings and recommendations for government consideration.
Industry data has previously suggested that banks block or delay a substantial proportion of attempted transfers to crypto exchanges — estimates have placed the figure around 40 per cent in some surveys.
Supporters of clearer banking access argue that unnecessary barriers create friction for legitimate businesses, while banks typically cite consumer protection, fraud prevention and volatility risks as reasons for caution.
The APPG’s intervention underscores a wider debate about balancing financial crime safeguards with the government’s ambition to position the United Kingdom as a competitive hub for digital asset innovation.
By seeking transparency from lenders, parliamentarians hope to identify practical solutions that allow compliant crypto firms to operate effectively without compromising systemic integrity. As the inquiry progresses and the new regulatory regime approaches, the responses from banks will be closely watched for any signals of policy shifts that could ease the current constraints.
